BASELINE SCHEDULING BASICS

Part 2: May 3, 2007

Mark Boe, P.E., PSP
Vice President Capital Project Management, Inc. mboe@cpmiteam.com

Chris Carson, PSP

Project Controls Manager Alpha Corporation chris.carson@alphacorporation.com

The information in this presentation or publication was developed and prepared by the authors for the purpose of education about the subject. This presentation or publication does not necessarily reflect the views of the Construction Management Association of America or constitute a position or policy of the Construction Management Association of America (CMAA). This material was presented with the permission of the authors and is subject to copyright under applicable law. The information contained herein is presented as descriptive of issues related to the subject at the time it was presented, but it has not been peer reviewed or approved by CMAA. No part of this presentation or publication is to be reproduced or used without written permission from the author and CMAA.

Baseline Scheduling
How should you benefit from this session?
Understanding of complex concepts Understanding of legal risks Overview of review standards Understanding of complex terminology QC Program & checklists Recognition of gamesmanship
2

Introduction Complex Concepts

Schedule Approvals
Traits necessary to approve Time frame recommendations for approval

Failure to approve schedule

What happens then? Best way to minimize risk

Early Completion schedules Ownership of float

3

Review Definitions
Critical Path Method (CPM) representation of a project plan by a network that depicts the duration, sequence and interrelation of the work activities. Critical Path longest path (or sequence) of activities, driven by their relationships, lags, leads, calendars, and constraints, through the project. Total Float the amount of time an activity can slip without impacting project completion (contingency time). Logic/Relationship Types description of the interrelation between the individual work activities

Schedule Approvals
Schedule traits & features to win approval
Meets specifications Matches Owner dictated sequencing Starts and finishes on time Provides a reasonable plan of work Critical path (LP) includes proportional share of activities Includes Owner mandated milestones Includes contractual scope of work Provides reasonable use of resources Does not include hidden tricks such as unknown lags, float sequestering, positioning for claims

Schedule Approvals
Time frame recommendations
No industry standards Important to get an approved schedule in place Two-Tiered schedules Consider a pre-construction or outline schedule submitted early, covering early work More detailed schedule with more time to develop Cost and resource loading require more time Consider submitted schedule for preliminary schedule as soon as logic worked out prior to loading Data needs to be captured periodically while schedule is in review (can do informal updates) Actual data will help minimize confusion and claims positioning by either side
6

Failure to Approve Schedule

What happens if schedule is not approved?
Examine the legal situation if not resolved In a claim situation, any schedules used for management of the project will be used for analysis, regardless of formal approval Examine the management situation Schedules are necessary for planning and monitoring If the schedule is used to manage the project, it becomes the schedule Schedules used for billing, if not approved, could hold up invoices

Failure to Approve Schedule

How to minimize risk?
Require review deficiencies in writing Make corrections for reasonable review comments Formally submit all revised submittals Show re-submittal cycle in schedule Keep a copy of official submittal schedule (baseline) without progress Capture update information even while developing schedule If stalemate, correct all reasonable, document unreasonable requests carefully when submitting last schedule Use last submitted (the best meeting of the minds for the plan) schedule for updates
8

Early Completion Schedules

Unintentional Early Completion
Review durations and other components carefully Do not leave float in baseline schedule Constrain Substantial Completion for contractual date Re-sequence or provide contingency time so schedule does not complete early

Intentional Early Completion

Check specification requirements for early completion Document or require documentation that project was bid with general conditions to match project duration If Contractor, notify Owner that intention is to finish early If Owner, suggest formal change order to move the completion date to the scheduled completion Negotiate the completion during baseline review
9

Review (or QC) Standards

Develop Standardized Schedule Review Checklist for schedule review and internal Contractor quality control

10

Review Standards
Compliance with specifications Owner milestones or constraints Start and End dates Schedule Architecture
Software settings and rules Verify calculations & no progress Statistics Critical Path settings
11

Review Standards
Schedule Architecture (continued)
Dictionaries (activity, resource code) Calendars Evaluate activities
Descriptions & scope coverage Ratio work/non-work activities Ratio trade work Types (owner, utilities, management, etc.) Relationship types
12

Work Calendars
Purpose Tailor the schedule to specific work or non-work periods Examples Holiday periods Non-work periods (e.g., winter months for sitework activities) Adverse weather planning (based on NWS average records) 7 day activities vs. 5 day activities (curing or submittals) Fixed time periods (e.g., available work areas)
13

Different Calendars = Different Float

1 2 3 4 5 6 7 8 9 10 11 12 13 14
One Calendar 5 day/week calendar Form & Pour 5

0 days Float
Cure 1 week 5 Strip Forms 3

10

11 12 13 14

Multiple Calendars 5 day/week calendar Form & Pour 5 Strip Forms 3

2 days Float, but still critical

7 day/week calendar Cure 1 week 7

10 11 12 13 14 15 16 17 18

Different Calendars = Different Float

1 2 3 4 5 6 7 8 9 10 11 12 13 14
One Calendar 5 day/week calendar Form & Pour 5

0 days Float
Cure 1 week 5 Strip Forms 3

10

Multiple Calendars 5 day/week calendar Form & Pour 5

Whats important 11 12 13 14 The Cure activity will appear on the 2 day float path even though it is critical. The Zero Strip have Float path willFormsa 5 day gap. 3

2 days Float, but still critical

7 day/week calendar Cure 1 week 7

10 11 12 13 14 15 16 17 18

Work Calendar Best Practices

Use the least number of calendars that you can, while reasonably modeling the project Multiple calendars make analysis more difficult Multiple use of calendars will amplify or reduce the effects of delay

16

Review Standards
Schedule Architecture (continued)
Logic
Statistics (lags, leads, relationship types) Evaluate Critical Path Develop rules of thumb for ratio of CP activities

Based on type of project, facilities/infrastructure Also review near-critical activities

17

Review Standards
Data retrieval from schedule
Develop data crunching methodologies
Master layouts with filters Export filters to export to Excel or Lotus Standard Pivot tables Input/output worksheet spreadsheets Graphical depictions for reasonableness

Histogram distributions Tables Charts

18

Review Standards
Use Pivot Tables or other data collecting & collating methodologies

19

No. Activities
H am m oc ks

100

150

200

250

300

50

Distribution of Activities

Review Standards

Histogram of Activity Work Scope (showing out of proportion detail in trade activities)

Feature of Work

an d A sp Mile ha C st le on ar lt P es in la g c an em en d G ru t bb i D em ng D E em o ro si ob litio on ili n za & S ed E tion im lec en tri t C ca on l tro l G La ra d M nd ing sc at er a ia pin lD g M e S to aint Mo live rm en b ry D an iliza ra ce tio in / S of n to Tra rm ffi Se c w S er tri So pi un S dw ub ng m / P al l itt al aint S / A ing id U ewa ppr nd ov er lk / al gr M ou ed nd ia n U til iti es

20

Review Standards
Require or provide Written Narrative
Check specifications Develop checklist for narrative Develop sequencing plan Good narrative explains the plan

21

Review Standards
Develop a good narrative checklist

22

Review Standards
Develop & provide Sequencing Plan

23

Gamesmanship
Approaches used to control outcome, or is it just bad scheduling?
No schedule or very late submittal Incomplete product submittals (statused as done) Missing management activities (fab, etc.) Overview schedule (minimal detail) or highly convoluted schedule (too much logic) Constraint driven schedule Calendar schedule (especially MSP)

24

Gamesmanship
Software calendar/date failure or just bad scheduling? MS Project Status date? Adjustable? Good feature? How does it calculate? Who understands it? Calendar schedule ability (just type in dates), wheres the logic? Primavera P3eC, Version 5.0 How many ways can you say date? Remaining & Remaining Late Start/Finish; calculated or manual, leveled or not (but not a resource calendar) Plain old Start or Finish what do they mean; whos in charge? Start - Remaining Start date until activity is started, then set to the Actual Start date Finish - Activity Planned Finish date whennot started, the Remaining Finish date when in progress, and the Actual Finish date once completed. Be sure to understand how the software you are using works with progress Need industry standardization 25

Update Process
Microsoft Project
Foundations
4

Structural Steel
4

Roof
1 4

Curtainwall

Interior Finishes

Punch List 4
1

Months

10 11 12 13 14 15 16 17 18

26

Update Process
Microsoft Project
Foundations
4

Does not automatically reschedule uncompleted work

4

Structural Steel Roof

1 4

Curtainwall

Interior Finishes

Punch List 4
1

Months

10 11 12 13 14 15 16 17 18

27

Update Process
Microsoft Project
Foundations
4

Does not automatically reschedule uncompleted work

4

Structural Steel Roof

1 4

Curtainwall

Interior Finishes

Punch List 4
1

Months

10 11 12 13 14 15 16 17 18
2 months

Primavera
Foundations
4

Properly rescheduled
Structural Steel
4

Roof
1

Curtainwall
4

Interior Finishes

Punch List 4
1

28

Microsoft Project
Reschedule Uncompleted Work to Start on Current Date

29

Gamesmanship
Tricks used to benefit schedule creator Contrived Critical Path Runs primarily through Owner items Runs primarily through A&E review Inappropriate successor relationships Constraints & calendars corrupt path Sequestered float (everything is critical) Hidden float (lags, durations, calendars) Out of proportion detail in trade work Inappropriate length of Critical Path Definition of Critical Path (LP, TF<?) Any risk shifting behavior
30

Gamesmanship - Defense
Approaches
Minimize risk shifting contract language and behavior Partnering
Develop process for updates and revisions early in project Follow the process

Get involved in Dispute Resolution/Claims Avoidance Reconcile schedule gain/loss with each update
Identify causes and responsibility for delay Require and provide recovery when schedule slips Timely legitimate time extensions Do not allow issues to fester

31

Gamesmanship - Defense
Request for Update Data Collect Admin Progress Data Verify All Data Compare to Baseline Critical Path Delay? Yes
Identify Contract Changes

No

Collect Field Progress Data

Status Schedule

Update Schedule

Identify Previous Period Critical Path Identify Causal Delay Activities Identify Changes To Critical Path

Research Documents For Driving Delays

Publish Updated Schedule

Quantify Delays

Assess Responsibility For Delays

Any Concurrent Delays? No Verify Single Source Delay Responsibility

Yes

Perform Concurrent Delay Analysis

Is the Owner Responsible For Delay?

Yes

Prepare Recovery Schedule

No Is the Owner Responsible For Delay? Is a Subcontractor Responsible For Delay? Yes Resolve Subcontractor Contributions

No

No

Develop a process for updates and revisions early & follow it

Yes

Discuss Delay & Mitigation with Subcontractor

Discuss Delay & Mitigation With Owner

Prepare Delay Analysis & Change Order

Gamesmanship - Defense
Defense against schedule tricks
Careful and detailed schedule review Analysis of Critical & Near Critical Path Keep good records Insist on accurate dates Promote or insist on maintaining schedule so it is current, providing a good model Good specifications Experienced schedulers and reviewers Field buy-in of schedule Management use of schedule
33

Gamesmanship - Defense
Track path to each milestone or constraint separately multiple critical paths should be isolated and reported individually

34

Gamesmanship - Defense
Suggested Reading
Jim Zack, Ex.: Construction Scheduling Games & Ways to Win Donald F. McDonald, Ex.: Tripping Hazards in Schedules

Documents are available at AACE website

35

BASELINE SCHEDULING BASICS

Part 2: May 3, 2007 See You in the Next Webinar!
Mark Boe, P.E., PSP
Vice President Capital Project Management, Inc. mboe@cpmiteam.com

Chris Carson, PSP

Project Controls Manager Alpha Corporation chris.carson@alphacorporation.com